Preparations for MakeMyTrip IPO started: Indian investors will get a big opportunity, know the complete planning of the company?

Business Desk – MakeMyTrip IPO: India’s leading online travel company MakeMyTrip has taken a big step towards the IPO of its Indian unit. The company has submitted documents through confidential pre-filing with SEBI, BSE and NSE for listing in the Indian stock market.

This means that the IPO process has started, but currently information like its issue size, price band, number of shares and listing date has not been made public. If this IPO comes as per plan, then for the first time Indian investors will get an opportunity to invest directly in the country’s largest online travel platform.

What will happen in IPO?

According to the company, equity shares of MakeMyTrip (India) Ltd will be sold under IPO. MakeMyTrip and its wholly owned subsidiary ibibo Group Holdings (Singapore) Pte Ltd will be among those selling stake in this offer.

However, even after the IPO, MakeMyTrip India will remain a subsidiary of the parent company. Its financial results will also be consolidated with the parent company as before.

What will happen to the money received from IPO?

The proceeds from the share sale will go to MakeMyTrip and ibibo Group Holdings. The company has said that this capital can be used to strengthen its cash position, long-term expansion, strategic acquisition (Inorganic Growth) and buyback of various securities including convertible securities.

Why is the company betting on India’s travel market?

Rapidly growing middle class in the country
increasing travel expenses
Increasing use of digital platforms
Still low penetration of organized travel services
Increase in domestic tourism, business travel and premium leisure travel after Covid-19
The company believes that this trend will accelerate its business in future also.

How big is the company’s business?

• More than 8.7 crore retail customers have done transactions.
• More than 77,000 small, medium and large corporate customers are connected.
• The mobile app has been downloaded more than 54.9 crore times.
• More than 3.25 crore hotel room nights have been booked.
• More than 10.46 crore bus tickets have been sold.

What information are still awaited?

Total size of IPO
price band
how many shares will be issued
when will the issue open
Expected date of listing

Why is this IPO special for investors?

Till now the parent company of MakeMyTrip is listed in the foreign stock exchange. After the listing in the Indian stock market, domestic investors will get the opportunity to invest directly in India’s fast growing online travel business for the first time.

However, before investing, it will be necessary to thoroughly assess the company’s draft documents, financial performance, profits, valuation, risk and price band of the IPO. This will decide how attractive this IPO can prove to be for long-term investment.